KEY TAKEAWAYS
- Ondo Finance launches an institutional-grade bridging solution with LayerZero to enhance security and interoperability of tokenized real-world assets.
- The solution uses a Multi-Messaging Aggregation approach with Decentralized Verifier Networks to ensure secure cross-chain transactions.
- Ondo’s bridging solution includes advanced security measures like Polyhedra’s ZKBridge and Axelar’s PoS Network to meet institutional standards.
- The bridge is live, supporting tokenized US Treasuries across Ethereum, Arbitrum, and Mantle, with plans for expansion to more chains.
Ondo Finance has announced the launch of its institutional-grade bridging solution in collaboration with LayerZero. This new development aims to enhance the security and interoperability of tokenized real-world assets (RWAs) across multiple blockchain ecosystems.
The bridging solution, built with LayerZero’s Application-Owned Security Model, introduces a Multi-Messaging Aggregation (MMA) approach. This method utilizes a diverse set of Decentralized Verifier Networks (DVNs) to independently verify cross-chain transactions, thereby eliminating single points of failure. Ondo’s CEO, Nathan Allman, emphasized the importance of secure and reliable interoperability for institutional-grade assets, stating that the solution ensures seamless cross-chain transactions.
Enhanced Security and Redundancy
Ondo’s bridging solution incorporates several security measures to meet institutional standards. The implementation includes Polyhedra’s ZKBridge, Axelar’s PoS Network, and LayerZero Labs’ general DVNs as mandatory message verifiers. Additionally, Ondo has developed its own DVN with specific validation protocols to further enhance security.
The Ondo DVN is designed to verify the burn and mint process of bridged assets, ensuring asset supply integrity. This approach reduces reliance on third-party verifiers and aligns with Ondo’s commitment to providing a secure bridging solution.
Innovative Features and Future Plans
Ondo’s bridging solution also features rate limiting at the smart contract level and an emergency pause function to mitigate risks. These measures aim to prevent unauthorized token minting and enhance incident response capabilities.
The bridge is currently live, allowing Ondo asset holders to leverage tokenized US Treasuries across Ethereum, Arbitrum, and Mantle. Ondo plans to expand bridge support to more chains, further increasing the accessibility and liquidity of its tokenized assets.
For more details, visit the official announcement here.
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
